Revenue management is the backbone of any successful hotel operation.
Most properties rely on outdated strategies and generic tools, thinking better pricing technology alone will maximize their revenue.
But these tools don’t move the needle as much as you might think.
After years of testing different revenue management strategies, we've found a unique edge by breaking away from the herd mentality and focusing on our own core principles...
Principles that consistently maximize our revenue while others follow the crowd.
I've been in your shoes.
When we first started Onera, we relied heavily on "off-the-shelf" revenue management products that promised sophisticated pricing strategies and optimal returns.
But in reality, they were doing anything but maximizing our revenue.
Here's what we found…
Traditional revenue management tools pull pricing data from what they consider to be your "comp set," create a strategy around their estimated base price, and call it "revenue optimization."
The problem? Most of these "comps" are properties with subpar revenue management strategies themselves.
Think about it:
If everyone in your market is charging $250/night year-round and your tool suggests matching that rate…
Are these properties actually optimizing their revenue? Or just copying each other's mediocre pricing?
Most likely the latter. And by following their lead, you end up with the same mediocre results.
After years of trial and error, we developed a more nuanced strategy that transformed our approach to revenue management.
There are a few fundamental principles we rely on:
1. We analyze market inventory volume and pricing daily, but don't let it dictate our pricing. It's just one data point in a more comprehensive approach.
This gives us insight into the market so we aren’t “flying blind,” but it doesn’t become the sole basis of our pricing strategy.
2. We're aggressive with weekday pricing, often skewing lower than the market.
While most automated tools overvalue weekday stays and leave calendars empty, we maintain consistent occupancy that drives steady revenue.
3. During peak season, we maintain premium pricing.
When demand surges and inventory is scarce, travelers will happily pay a premium for remaining availability.
4. For low season, we focus on securing early bookings.
We'd rather lock in 80% occupancy at $139 than gamble on 20% occupancy at $259. It's about understanding the psychology of booking patterns and adapting accordingly.
And yes, having someone with an actual mathematics background leading our revenue strategy makes a difference – you'd be surprised how many properties don’t even think about this.
The Results Speak for Themselves
At Onera Fredericksburg, this strategy has generated over $4,500,000+ in revenue, with an ADR of $525+ over the last three years.
Our newest property, Onera Wimberley, achieved similar success in just five months generating $920,000+ in revenue as we continue to ramp up ADRs at the property.
The secret isn't an off-the-shelf dynamic pricing software—it's better strategy, better analysis, and better execution.
Breaking free from the herd mentality and focusing on proven revenue management principles is what drives exceptional results.
___________________
Exciting news for your hotel!
We’ve expanded the Oasi team to bring you the same strategies and expertise that fueled Onera’s success.
From boosting your social media presence and marketing strategies, to optimizing pricing and offering full-service property management, we’re ready to help your property attract the Modern Traveler and maximize your returns.
Fill out an inquiry here and let’s explore how we can work together.
See you guys next week!
-Ben Wolff
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📸 Looking to Learn More? Check Out My Daily Content on Instagram
🎥 Check Out My Episode on The Rich Somers Report on Giving Modern Travelers An Experience & Strategies That Led to Onera’s Success
🎥 Check Out My Roundtable with Isaac French, Zach Busekrus and Nick Purslow on the Future of Unique Hospitality
Ben Wolff
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